Summaries of health policy coverage from major news organizations

DGS Announces Contracts for Prescription Drug Services

The Department of General Services on Tuesday announced two pharmaceutical contracts for state prisons, youth correctional facilities, mental hospitals and centers for the developmentally disabled, and employees of state universities, the Sacramento Bee reports.

State and Consumer Services Agency Secretary Fred Aguiar said the contracts will save the state an estimated $10 million in medication costs.

Pennsylvania-based AmerisourceBergen was awarded a $173 million contract to become the pharmacy benefit manager for the department. The contract retains discounted drug prices already negotiated by DGS and is expected to save about $1.3 million annually.

HealthTrans, based in Colorado, won a $21 million contract to provide pharmacy services for parolees. The contract increases the number of pharmacies where parolees can receive medications and will reduce costs to the state by an estimated 27% over previous contracts (McIntosh, Sacramento Bee, 12/7).

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